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$146.43 xero limited

I remember rod Drury saying back when he was CEO , " we can...

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gibson52

56 Posts.

8

15/11/22

22:04

Post #: 64793138
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Originally posted by Torpy: ↑

First time in many many years (I believe) the LTV exceeds the MC.
If I could be bothered I would overlay these two charts (and correct for top chart in USD and botom one in NZD) but its pretty obvious.
90% gross margin, and if you switch off marketing and product development, theres just another 10% of general admin, so 80% net profit (cashflow)
This is significant and provides the investment case.
If you switched off marketing and product development and just flowed the cash back to shareholders for 9 years (assumed that growth in subscrption fees cancels out the discount rate), your cashflow would be more than the current SP.
That doesnt account for word of mouth marketing (new subscribers) and also the fact that the 'term' of a subscriber is supposedly 9,2 years which is a very crude calculation based on churn on 0.91% per month (100/(12*0.91)), but if you exponentially decayed it the weighted average subscriber term would be longer
They are not going to do this, but the 'shut the doors' scenario gives this a floor in the price I beleive

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I remember rod Drury saying back when he was CEO , " we can always swim to the side of the pool".
which I think is what you are saying.

XRO Price at posting: $69.44 Sentiment: Hold Disclosure: Held
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(20min delay)
Last $146.43		Change -3.770(2.51%)		Mkt cap ! $22.35B

Open	High	Low	Value	Volume
$147.96	$148.60	$145.38	$66.93M	457.0K

Buyers (Bids)

No.	Vol.	Price($)
2	364	$146.43

Sellers (Offers)

Price($)	Vol.	No.
$146.58	1220	2

View Market Depth

No.	Vol.	Price($)
1	2	146.430
1	100	146.000
1	50	145.730
1	149	145.530
1	15	145.500

Price($)	Vol.	No.
146.590	1227	1
146.770	1227	1
146.960	1227	1
148.600	131	1
149.000	170	2

Last trade - 16.10pm 02/10/2024 (20 minute delay)

XRO (ASX) Chart